Singapore legislation
Regulation 5
of Income Tax (Concessionary Rate of Tax for Approved Insurance Brokers) Regulations 2017
Regulation 5
Concessionary rate of tax for income of approved insurance broker
Subregulation 1
Tax is payable at the rate of 10% on the commissions and fees derived by an approved insurance broker whose approval is granted on or before 18 February 2025 from the provision of either or both of the following services that do not relate to any insurance in paragraph (2):
insurance broking services;
advisory services.
Subregulation 1A
Tax is payable by an approved insurance broker whose approval is granted between 19 February 2025 and 31 December 2028 (both dates inclusive) at the rate of 10% or 15% (whichever is the rate approved for the insurance broker) on the commissions and fees derived by the approved insurance broker on or after 1 January 2025 from the provision of either or both of the following services that do not relate to any insurance in paragraph (2):
insurance broking services;
advisory services.
Subregulation 2
For the purposes of paragraphs (1) and (1A), the insurance are —
an insurance under a direct stand‑alone policy; or (b)an insurance against any risk underwritten by a direct life insurer in the course of carrying on its life business.(c)[Deleted by S 8/2019 wef 01/04/2018]
Subregulation 3
For the purposes of paragraphs (1) and (1A), the Comptroller must determine —
the income chargeable to tax under that paragraph having regard to such expenses, capital allowances and donations allowable under the Act as are, in the Comptroller’s opinion, to be deducted in ascertaining such income; and
the manner and extent to which any losses arising from the provision of the services to which that paragraph applies, may be deducted under section 37(3) of the Act in ascertaining the chargeable income of the approved insurance broker under that paragraph.
Subregulation 4
In paragraph (2)(a), “direct stand‑alone policy” means a direct insurance policy that a person purchases to cover one or more of the following risks (and not any other risk):
fire risk;
motor risk;
work injury compensation risk;
personal accident risk;
health risk.